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STAFF REPORT
Public Works Services Department
DATE: November 19, 2013
TO: Honorable Mayor and City Council
FROM: Tom Tait, Public Works Services Director
By: Ken Herman, Deputy Public Works Services Director
SUBJECT: AUTHORIZE AND DIRECT THE CITY MANAGER TO PURCHASE 3,800
ACRE -FEET OF IMPORTED REPLACEMENT WATER FROM THE MAIN
SAN GABRIEL BASIN WATERMASTER FOR A TOTAL COST OF
$2,557,400
Recommendation: Approve
SUMMARY
The City of Arcadia gets a major portion of its drinking water supply from the Main San
Gabriel Groundwater Basin (Basin). The remaining demand is met from City wells that
pump a fixed amount of groundwater from the Raymond Basin. The City of Arcadia has
a Cyclic Storage account with the Main San Gabriel Basin Watermaster that can be
used to store imported water in the Basin for later use. This year, the City has the
opportunity to pre - purchase imported water that has been made available through
Upper San Gabriel Valley Municipal Water District for $673 per acre -foot. This rate is
about $100 per acre -foot less than normally purchased Replacement Water. The water
will remain in the City's account until it is used.
It is recommended that City Council authorize and direct the City Manager to purchase
3,800 acre -feet of imported Replacement Water from the Main San Gabriel Basin
Watermaster for a total cost of $2,557,400.
DISCUSSION
In 1973, as a result of overproduction of water from the Basin, a stipulated judgment
was entered into that created the Main San Gabriel Basin Watermaster. The Main San
Gabriel Basin Watermaster is a nine - person board appointed by the Los Angeles
County Superior Court that administers and enforces the provisions of the Main San
Gabriel Basin Judgment, which established water rights and responsibility for efficient
management of the quantity and quality of the Basin.
Purchase Replacement Water from the Main San Gabriel Basin Watermaster
November 19, 2013
Page 2 of 3
This is accomplished in part by the Main San Gabriel Basin Watermaster determining
the total amount of water that can be pumped from the Basin each year, free from a
Replacement Water assessment, which is referred to as the Operating Safe Yield. The
City of Arcadia's annual share of the Operating Safe Yield is 4.23 %. Pumping more
water than the amount established for a given year is allowed; however, production in
excess of the City's annual share requires purchase of Replacement Water to recharge
the groundwater basin.
Recent pumping restrictions imposed on City of Arcadia wells due to low groundwater
levels in the East Raymond Basin have put a greater demand on water pumped from
the Basin. For FY 2013 -14, the City of Arcadia is allowed to pump 7,616 acre -feet of
water from the Basin. Based on current pumping trends, it is anticipated that this Fiscal
Year the City will pump approximately 12,500 acre -feet of water from the Basin in order
to meet demands. This means that it is projected that the City will need to purchase an
additional 4,884 acre -feet of Replacement Water at the end of the Fiscal Year.
The Main San Gabriel Basin Watermaster has set the cost for Replacement Water at
$773 per acre -foot for FY 2013 -14. Pre - purchasing 3,800 acre -feet of imported water at
the rate of $673 an acre -foot and storing the water in the City's Cyclic Storage Account
will save the City $380,000. The advantages of pre - purchasing imported water and
storing it in the City's Cyclic Storage Account are two -fold. It ensures that "wet" water is
delivered to the Basin this year, which helps keep groundwater levels in the Basin high.
Also, the water is purchased at a lower rate and can be stored in the City's Cyclic
Storage Account for up to five years. This water will be used to satisfy over production
this Fiscal Year, and any remaining balance will be saved in the City's Cyclic Storage
Account to be used in later years to offset over production.
FISCAL IMPACT
Sufficient funds have been budgeted in the FY 2013 -14 Water Operations Budget for
the purchase of Replacement Water. Pre - purchasing imported Replacement Water will
save the City approximately $380,000 and can be used to satisfy the City's over
production in the Main San Gabriel Groundwater Basin.
Purchase Replacement Water from the Main San Gabriel Basin Watermaster
November 19, 2013
Page 3 of 3
RECOMMENDATION
It is recommended that the City Council authorize and direct the City Manager to
purchase 3,800 acre -feet of Imported Replacement Water from the Main San Gabriel
Basin Watermaster for a total cost of $2,557,400.
Approved:
Dominic Lazza
City Manager